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Reports BRAZIL - MARKET REPORT


held in the state of Rio de Janeiro. Sports betting would be available both online and via lottery points of sale. Other states could follow. Loteria Mineira is planning to introduce new types of games, including instant lotteries and sports betting in the state of Minas Gerais. Te new rules approved by Governor Romeu Zema will also allow the Loteria Mineira (LEMG) to operate new lottery products including passive lottery games, a numerical lottery, sports lottery games and instants. Te LEMG announced that Intralot, IGT and Scientific Games (in a joint bid), and Torsborg do Brasil Consultoria em Tecnologia Ltda, had been authorised to take part in the bidding process. Meanwhile sportsbetting was incorporated into new lottery laws in the state so that it encompasses federal sports betting regulation. Published in the Official Gazette the regulations authorise the lottery to operate fixed-odds betting on sporting events both online and via retail lottery points of sale.


In February 2021 Governor João Azevêdo signed State Decree No. 41,037, which expands the Paraíba State Lottery (Lotep) in the wake of the Supreme Court decision. Other individual states are moving ahead with their own plans to offer their own lotteries. In the state of Tocantins Governor Mauro Carlesse gave his approval for private operators to prepare feasibility studies


Te new rules approved by Governor Romeu Zema will also allow the Loteria Mineira (LEMG) to operate new lottery products including passive lottery games, a numerical lottery, sports lottery games and instants. Te LEMG announced that Intralot, IGT and Scientific Games, and Torsborg do Brasil Consultoria em Tecnologia Ltda, had been authorised to take part in the bidding.


for a newly proposed state lottery. Private operators would be allowed to partner with the state to offer the lottery while resources generated by the lottery would be used to finance social welfare programs and provide funding for culture, sports, health and education.


THE PRIVATISATION OF CAIXA


Other major changes are on the way for the lottery sector due to a much larger sell off of state assets. In 2015, the government took the first steps in liberalising its gaming market by permitting instant lotteries, both electronic and online. Te Brazilian Development Bank (BNDES) a federal public company associated with the Ministry of Development, Industry and Trade and the main financing agent for development in Brazil oversaw the privatisation of CAIXA’s instant lottery arm. Public tenders for selecting the operator lasted years and were abandoned several times due to a lack of interest.


P72 WIRE / PULSE / INSIGHT / REPORTS


In 2019, once BNDES decided to relax the rules of the licensing process a consortium Consórcio Estrela Instantânea formed by SGI and IGT won the bid for Lotex. It was expected to be fully operational by the end of 2020, but was delayed because of COVID-19. Te consortium withdrew from its contract in October 2020 announcing that the decision had been taken as a result of a failure to establish a distribution agreement with CAIXA Federal: a deal that both companies believed was integral to the success of the


business model. In addition in a joint statement the company cited the STF’s decision to allow states to offer their own lotteries as one of the reasons behind their move. Despite this drawback the government will continue to privatise the lottery. Te divestment of state owned assets was one of Bolsonaro’s main campaign promises during the 2018 election. Te government is moving ahead with plans to privatise power holding firm Eletrobras, postal and telegraph service Correios (ECT) and


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